CPS Announces $224.8 Million Senior Subordinate Asset-Backed Securitization
July 26 2017 - 1:50PM
Consumer Portfolio Services, Inc. (Nasdaq:CPSS) (“CPS” or the
“Company”) today announced the closing of its third term
securitization in 2017. The transaction is CPS's 25th senior
subordinate securitization since the beginning of 2011 and the
eighth consecutive securitization to receive a triple “A” rating on
the senior class of notes from at least two rating agencies.
In the transaction, qualified institutional
buyers purchased $224.83 million of asset-backed notes secured by
$230.0 million in automobile receivables originated by CPS.
The sold notes, issued by CPS Auto Receivables Trust 2017-C,
consist of five classes. Ratings of the notes were provided
by Standard & Poor’s and DBRS, and were based on the structure
of the transaction, the historical performance of similar
receivables and CPS’s experience as a servicer.
Note
Class |
|
Amount |
|
Interest Rate |
|
Average Life |
|
Price |
|
S&P Rating |
|
DBRS
Rating |
A |
|
$105.800 million |
|
1.78 |
% |
|
.66
years |
|
99.99521 |
% |
|
AAA |
|
AAA |
B |
|
$35.075 million |
|
2.30 |
% |
|
1.78
years |
|
99.99840 |
% |
|
AA |
|
AA |
C |
|
$31.050 million |
|
2.86 |
% |
|
2.47
years |
|
99.97911 |
% |
|
A |
|
A |
D |
|
$27.600 million |
|
3.79 |
% |
|
3.31
years |
|
99.97890 |
% |
|
BBB |
|
BBB |
E |
|
$25.300 million |
|
5.72 |
% |
|
4.01
years |
|
99.97441 |
% |
|
BB- |
|
BB |
The weighted average coupon on the notes is
approximately 3.52%.
The 2017-C transaction has initial credit
enhancement consisting of a cash deposit equal to 1.00% of the
original receivable pool balance and over-collateralization of
2.25%. The final enhancement level requires accelerated
payment of principal on the notes to reach overcollateralization of
6.50% of the original receivable pool balance.
The transaction utilizes a pre-funding
structure, in which CPS sold approximately $161.7 million of
receivables today and plans to sell approximately $68.3 million of
additional receivables during August 2017. This further sale
is intended to provide CPS with long-term financing for receivables
purchased primarily in the month of July. The initial funding
of $161.7 million includes $15.7 million of receivables that were
originally securitized in 2012, the bonds secured by those
receivables having been prepaid by CPS.
The transaction was a private offering of
securities, not registered under the Securities Act of 1933, or any
state securities law. All of such securities having been
sold, this announcement of their sale appears as a matter of record
only.
About Consumer Portfolio Services,
Inc.
Consumer Portfolio Services, Inc. is an independent
specialty finance company that provides indirect automobile
financing to individuals with past credit problems, low incomes or
limited credit histories. We purchase retail installment sales
contracts primarily from franchised automobile dealerships secured
by late model used vehicles and, to a lesser extent, new vehicles.
We fund these contract purchases on a long-term basis through the
securitization markets and service the loans over their entire
contract terms.
Investor Relations Contact
Jeffrey P. Fritz, Chief Financial Officer
844-878-CPSS (844-878-2777)
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